a)
To discuss:
Calculation of required return.
Introduction:
b)
To discuss:
Calculation of risk free return.
Introduction:
Capital asset pricing model or CAPM establishes the relationship between the projected return for assets and systematic risk on the stocks.
c)
To discuss:
Calculation of market return.
Introduction:
Capital asset pricing model or CAPM establishes the relationship between the projected return for assets and systematic risk on the stocks.
d)
To discuss:
Calculation of beta.
Introduction:
Capital asset pricing model or CAPM establishes the relationship between the projected return for assets and systematic risk on the stocks.
Beta is an indicator of the risk tha measures the systematic risk of a risky investment by comparing the risky investment with the average risky asset in the market.
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